Entain is seeking to acquire three of the 15 available iGaming licences in New Zealand, as announced by CEO Stella David during the company’s annual financial results call for the fiscal year 2025. The announcement follows a reported 8% increase in group net gaming revenue to £5.3 billion. The move into New Zealand marks a significant strategic consideration for Entain as it plans to expand its operations into a market projected to launch in 2027. This expansion is noteworthy given the potential for Entain to capture a substantial portion of New Zealand’s estimated £600 million market, according to CFO Rob Wood.
The New Zealand Department of Internal Affairs has indicated that the licensing process is set to commence in July. Entain’s interest in the New Zealand market is bolstered by its exclusive partnership with the TAB betting brand, allowing for a cross-sell between sports betting and iGaming. There had been earlier uncertainties about whether TAB could apply for an iGaming licence due to its existing betting monopoly, but CEO David and CFO Wood maintain a positive outlook on their prospects in the region.
In parallel with its international expansion, Entain has unveiled an enhanced strategy to mitigate the impact of impending increases in the UK’s Remote Gaming and Remote Betting duties. Initially, the company planned for £25 million in savings but has since doubled this target to £50 million. This is part of a broader strategic shift focusing on cash generation, and the company aims to achieve £500 million in annual adjusted cash flow by 2028.
A key component of this strategy includes refining bonusing practices to bolster player retention and addressing product gaps. Entain reports a customer acquisition rate exceeding 15%. CEO David emphasized the importance of optimizing marketing rates as a percentage of net gaming revenue (NGR) and reducing the cost of sales.
Entain is also leveraging artificial intelligence to cut costs and enhance both the customer and employee experiences, which aligns with its goal to maintain a single-digit growth trajectory through 2026. The company anticipates increasing its market share in the UK, where smaller operators face competitive pressures.
In the UK and Ireland, Entain experienced a 15% growth in online operations during 2025, largely driven by an 18% increase in gaming NGR. Sports NGR grew by 7% over the same period, although results were impacted by developments in the fourth quarter. The company’s market share has strengthened, with Entain holding prominent positions across 13 of its 16 active markets globally.
In response to inquiries about outperforming its largest competitor in the UK, CEO David attributed Entain’s success to improving customer experiences and introducing a new offering with Ladbrokes, including a bet builder feature for racing.
Financially, Entain reported a gross profit of £3.2 billion for the year, marking a 3% rise from 2024. Underlying EBITDA increased by 7% to £1.2 billion. This financial performance was supported by an unexpectedly high return on investment from BetMGM during the year.
Looking ahead to 2026, Entain anticipates online NGR growth of 5-7% in constant currency, with CFO Wood forecasting stable group EBITDA, inclusive of BetMGM, despite the challenges posed by increased UK taxes. The coming months will be crucial as Entain navigates regulatory processes in New Zealand and implements its revised tax strategy in the UK.
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